Tournament incentives affect perceived stress and hormonal stress responses

Abstract We conduct a laboratory experiment among male participants to investigate whether rewarding schemes that depend on work performance—in particular, tournament incentives—induce more stress than are independent of performance—fixed payment scheme. Stress is measured over the entire course at both hormonal and psychological level. Hormonal responses captured by measuring salivary cortisol levels. Psychological self-reported feelings primary appraisals. find incentives induce response whereas fixed does not stress. This differ significantly across situations in which winners losers publically announced this information remains private. Biological measures positively correlated, i.e. increased levels associated with stronger Nevertheless, neither perceived nor elevated previous predict subsequent choice between tournaments schemes, indicating induced relevant criterion for sorting decisions our experiment. Finally, we severely beginning experiment, suggesting experience anticipation per se, potentially due uncertainties unknown lab situation. call novelty effect.